Bankruptcy filings fell 18.2% in 2017, compared to the previous year. Decreed bankruptcies, in turn, rose 2.9% last year, while pending judicial reorganization requests fell 23.7% and those already granted fell 18.9%. The data were released by Boa Vista SCPC (Central Credit Protection Service), in São Paulo.
“Now that the period of intense contraction in economic activity, reduction in consumption, restriction and rising cost of credit, among other factors, has passed, companies are once again beginning to show more solid signs in their solvency indicators, a fact that should continue, since the economic scenario has shown signs of gradual recovery in various productive sectors,” the entity says.
You may also be interested in these publications:
Crisis in the company: Is Judicial Reorganization the best alternative?
Recovery of tax credits in family businesses
Leaders in bankruptcy filings
The services sector had the highest percentage of bankruptcy filings, 44%, followed by the industrial sector, with 30%, and commerce, with 26%.
Compared to 2016, industry was the sector that recorded the largest decline in the comparison of the values accumulated over the year 2017, with a drop of 33%. Maintaining the same basis of comparison, commerce had a reduction of 12% and the services sector, of 8%.
With regard to the size of companies, small companies, for example, showed that, for both bankruptcy filings and decreed bankruptcies, there was a representation of 93% of cases.
Both in judicial reorganization requests and in granted judicial reorganizations, small companies also account for the highest percentage, both with 94% of the total cases, respectively.
(Source: Agência Brasil)
← Back to blog